Finance
In Washington, a 'contract for deed' (land installment contract) is considered a financing instrument rather than a sale because:
AThe deed is immediately recorded
BThe seller retains legal title until all payments are made and uses the title retention as security for the purchase price✓ Correct
CThe buyer has no rights until the last payment
DOnly sellers can use contract for deed financing
Explanation
In a contract for deed, the seller retains legal title as security while the buyer makes installment payments. Because the seller is essentially 'financing' the sale by retaining title as security, courts and regulators may treat this as a financing arrangement with special buyer protections.
Related Washington Finance Questions
- Washington State does NOT have which of the following taxes?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on all of the following EXCEPT:
- The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB), which regulates Washington mortgage lenders primarily through:
- A Washington buyer's loan has a 'due-on-sale' clause. This means:
- A Washington seller is willing to carry back a purchase money deed of trust to help the buyer finance the purchase. This arrangement is called:
- Washington's Real Estate Excise Tax (REET) uses a tiered rate structure. For sales above $3 million, the rate is:
- Washington's Community Reinvestment Act (CRA) obligations apply to:
- In Washington, which type of mortgage allows the borrower to use the property as collateral without it being in the borrower's name (used for investment purposes)?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →